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Scottish Council for Voluntary Organisations
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Supporting Scotland's vibrant voluntary sector

Scottish Council for Voluntary Organisations

The Scottish Council for Voluntary Organisations is the membership organisation for Scotland's charities, voluntary organisations and social enterprises. Charity registered in Scotland SC003558. Registered office Caledonian Exchange, 19A Canning Street, Edinburgh EH3 8EG.

Scottish Council for Voluntary Organisations

Subsidy control

Supported by Brodies LLP

Subsidy control is the legal framework that applies to certain forms of financial assistance provided by public authorities to organisations. This guide, produced by SCVO and Brodies LLP with input from Third Sector Interfaces, explains what the framework means in practice for voluntary organisations and public authority commissioning teams.

Explore the sections below to find out what subsidy control means for your organisation, when it applies, and what to do if you think a public authority has got it wrong.

Subsidy control and the voluntary sector

What subsidy control is

The legal framework that regulates how UK public authorities award subsidies to third parties, like voluntary organisations, to deliver policy objectives.

Defining a subsidy

The four-limbed test used to decide whether financial assistance counts as a subsidy — and what falls outside the regime altogether.

Why subsidies are awarded

Subsidies must pursue a clear public policy objective: addressing a market failure or a social inequity.

How subsidies can be awarded

The lawful routes available to public authorities — standalone subsidies, subsidy schemes, streamlined routes, SPEIs, and Minimal Financial Assistance.

What subsidy control means for the voluntary sector

Many public resources received by voluntary organisations won't be subsidies at all — and where they are, funding still isn't prohibited.

From State Aid to Subsidy Control

How the UK's departure from the EU replaced the State aid regime with a new domestic subsidy control framework from January 2023.

Exemptions

Circumstances where a public authority can award a subsidy without needing to comply with the full subsidy control requirements.

Voluntary organisations distributing public funding

Where a voluntary organisation distributes public resources on a public authority's behalf, and what that means for compliance.

Challenging a public authority's approach

What to do if an organisation disagrees with how a public authority has treated financial assistance under the regime.

Where to get help & further resources

Guidance documents, statutory guidance, and further support from SCVO, Third Sector Interfaces, and UK/Scottish Government.

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The Scottish Council for Voluntary Organisations is the membership organisation for Scotland's charities, voluntary organisations and social enterprises.
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2026. The Scottish Council for Voluntary Organisations (SCVO) is a Scottish Charitable Incorporated Organisation.
Charity registered in Scotland SC003558. Registered office Caledonian Exchange, 19A Canning Street, Edinburgh EH3 8EG.